Defence Logistics Organisation

To ask the Secretary of State for Defence what departmental savings have been achieved by the Defence Logistical Organisation; and whether they have met the funding assumptions of the Strategic Defence Review. [112563]

[holding answer 13 May 2003]: Savings achieved by the Defence Logistics Organisation are recorded against its overall efficiency target to reduce the costs of its outputs by 20 per cent, by March 2006. Details of the DLO's performance against its strategic goal to March 2002 are contained in my answer on 15 January 2003, Official Report, column 634W, to the hon. Member for Newark (Patrick Mercer). Subject to final validation, it is estimated that a farther 2 per cent, efficiency savings have been achieved in 2002–03.